Green Brick Partners Inc (GRBK)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 1,902,830 | 1,655,680 | 1,421,870 | 988,847 | 875,539 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $1,902,830K
= 0.00
The debt-to-assets ratio of Green Brick Partners Inc has exhibited a general decreasing trend over the past five years, indicating a positive shift towards a lower level of leverage. The ratio decreased from 0.27 in 2019 to 0.18 in 2023. This suggests that the company has been able to reduce its reliance on debt to finance its assets over time.
A lower debt-to-assets ratio can imply a stronger financial position as it indicates that a smaller proportion of the company's assets are funded by debt. This may reduce the company's financial risk and increase its ability to withstand economic downturns or unexpected challenges.
However, despite the downward trend, it is important to note that debt is still being used to finance around 18% of the company's assets as of December 31, 2023. Therefore, ongoing monitoring of the debt levels is essential to ensure sustainable financial health and growth for Green Brick Partners Inc.
Peer comparison
Dec 31, 2023